FedEx (FDX) FY2026: Revenue $94.7B, +7.7%; Operating Margin Falls — Freight Spinoff, Fiscal Year Change, Supply Chain Sale
Executive Summary
FedEx's FY2026 (June 1, 2025–May 31, 2026) 10-K covers a fiscal year dominated by structural transformation. Three events define it: ① In December 2024 the board announced the separation of LTL subsidiary FedEx Freight; the company declared an 80.1% pro rata distribution (record date May 15) on May 13, 2026, and completed the spinoff on June 1, 2026 (one Freight share per two FedEx shares, retaining 19.9%). ② On July 1, 2026, FedEx announced the $1.4 billion sale of FedEx Supply Chain to CMA CGM Group. ③ Effective June 1, 2026, FedEx shifted its fiscal year-end from May 31 to December 31 — the ensuing seven-month transition period (June–December 2026) will be reported in a separate Transition Report.
The headline numbers diverge between top-line growth and profitability. FY2026 consolidated revenue was $94,720M, up +7.7% from $87,926M in the prior year, but operating income of $5,460M rose only +5%, pushing operating margin down from roughly 5.9% to 5.8%. Adjusted diluted EPS of $20.24 topped the company's own guidance range of $19.30–$20.10, yet the stock fell roughly 6% in after-hours trading following the June 23, 2026, earnings release — the company's calendar-year 2026 adjusted EPS guidance of $16.90–$18.10 (midpoint $17.50) came in below market expectations.
